India’s tax reversal to give struggling ECM a big push

By Rashmi Kumar

29 Aug 2019

The Indian government has done an about-turn on plans to introduce higher taxes on foreign portfolio investors as it finds ways to boost sentiment in the market. Experts reckon the finance ministry “misjudged” the state of things in India, and scrapping the tax will give a much-needed impetus to the country’s equity capital markets. Rashmi Kumar reports.

When finance minister Nirmala Sitharaman made her maiden budget speech in early July, she announced a planned increase in tax on investments by high net worth individuals, foreign portfolio investors and alternative investment funds in India. The tax rates — applicable to both primary and secondary investments —
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